Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 26, 2024 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-36773 | |
Entity Registrant Name | WORKIVA INC | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 47-2509828 | |
Entity Address, Address Line One | 2900 University Blvd | |
Entity Address, City or Town | Ames | |
Entity Address, State or Province | IA | |
Entity Address, Postal Zip Code | 50010 | |
City Area Code | 888 | |
Local Phone Number | 275-3125 | |
Title of 12(b) Security | Class A common stock, par value $.001 | |
Trading Symbol | WK | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001445305 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2024 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Class A Common Stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 51,394,455 | |
Class B Common Stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 3,845,583 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Current assets | ||
Cash and cash equivalents | $ 267,897 | $ 256,100 |
Marketable securities | 472,956 | 557,622 |
Accounts receivable, net of allowance for doubtful accounts of $1,200 and $1,163 at June 30, 2024 and December 31, 2023, respectively | 121,359 | 125,193 |
Deferred costs | 41,994 | 39,023 |
Other receivables | 6,877 | 7,367 |
Prepaid expenses and other | 21,307 | 23,631 |
Total current assets | 932,390 | 1,008,936 |
Property and equipment, net | 22,268 | 24,282 |
Operating lease right-of-use assets | 10,535 | 12,642 |
Deferred costs, non-current | 40,169 | 33,346 |
Goodwill | 199,202 | 112,097 |
Intangible assets, net | 31,533 | 22,892 |
Other assets | 6,592 | 4,665 |
Total assets | 1,242,689 | 1,218,860 |
Current liabilities | ||
Accounts payable | 8,229 | 5,204 |
Accrued expenses and other current liabilities | 113,339 | 97,921 |
Deferred revenue | 384,105 | 380,843 |
Finance lease obligations | 547 | 532 |
Total current liabilities | 506,220 | 484,500 |
Convertible senior notes, non-current | 763,672 | 762,455 |
Deferred revenue, non-current | 27,694 | 36,177 |
Other long-term liabilities | 221 | 178 |
Operating lease liabilities, non-current | 8,856 | 10,890 |
Finance lease obligations, non-current | 13,773 | 14,050 |
Total liabilities | 1,320,436 | 1,308,250 |
Stockholders’ deficit | ||
Preferred stock, $0.001 par value per share, 100,000,000 shares authorized, no shares issued and outstanding | 0 | 0 |
Additional paid-in-capital | 608,804 | 562,942 |
Accumulated deficit | (681,876) | (652,641) |
Accumulated other comprehensive (loss) income | (4,730) | 255 |
Total stockholders’ deficit | (77,747) | (89,390) |
Total liabilities and stockholders’ deficit | 1,242,689 | 1,218,860 |
Class A Common Stock | ||
Stockholders’ deficit | ||
Common stock | 51 | 50 |
Class B Common Stock | ||
Stockholders’ deficit | ||
Common stock | $ 4 | $ 4 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Allowance for doubtful accounts | $ 1,200 | $ 1,163 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Class A Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, share authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued (in shares) | 51,068,836 | 50,333,435 |
Common stock, shares outstanding (in shares) | 51,068,836 | 50,333,435 |
Class B Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, share authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 3,845,583 | 3,845,583 |
Common stock, shares outstanding (in shares) | 3,845,583 | 3,845,583 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenue | ||||
Total revenue | $ 177,503 | $ 155,022 | $ 353,170 | $ 305,211 |
Cost of revenue | ||||
Total cost of revenue | 41,172 | 39,504 | 82,695 | 78,022 |
Gross profit | 136,331 | 115,518 | 270,475 | 227,189 |
Operating expenses | ||||
Research and development | 48,408 | 42,697 | 93,903 | 88,488 |
Sales and marketing | 84,697 | 71,882 | 167,330 | 142,592 |
General and administrative | 26,375 | 23,627 | 50,674 | 65,638 |
Total operating expenses | 159,480 | 138,206 | 311,907 | 296,718 |
Loss from operations | (23,149) | (22,688) | (41,432) | (69,529) |
Interest income | 10,336 | 4,535 | 20,791 | 8,252 |
Interest expense | (3,237) | (1,499) | (6,469) | (3,000) |
Other (expense) income, net | (45) | (439) | 41 | (1,379) |
Loss before provision for income taxes | (16,095) | (20,091) | (27,069) | (65,656) |
Provision for income taxes | 1,453 | 819 | 2,166 | 1,404 |
Net loss | $ (17,548) | $ (20,910) | $ (29,235) | $ (67,060) |
Net loss per common share: | ||||
Basic (in dollars per share) | $ (0.32) | $ (0.39) | $ (0.53) | $ (1.25) |
Diluted (in dollars per share) | $ (0.32) | $ (0.39) | $ (0.53) | $ (1.25) |
Weighted-average common shares outstanding - basic (in shares) | 55,177,162 | 54,009,963 | 55,046,507 | 53,850,986 |
Weighted-average common shares outstanding - diluted (in shares) | 55,177,162 | 54,009,963 | 55,046,507 | 53,850,986 |
Subscription and support | ||||
Revenue | ||||
Total revenue | $ 160,735 | $ 136,772 | $ 315,714 | $ 266,436 |
Cost of revenue | ||||
Total cost of revenue | 27,945 | 25,083 | 55,872 | 49,216 |
Professional services | ||||
Revenue | ||||
Total revenue | 16,768 | 18,250 | 37,456 | 38,775 |
Cost of revenue | ||||
Total cost of revenue | $ 13,227 | $ 14,421 | $ 26,823 | $ 28,806 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (17,548) | $ (20,910) | $ (29,235) | $ (67,060) |
Other comprehensive (loss) income | ||||
Foreign currency translation adjustment | (728) | 308 | (3,211) | 2,009 |
Unrealized (loss) gain on available-for-sale securities | (367) | (316) | (1,774) | 1,263 |
Other comprehensive (loss) income | (1,095) | (8) | (4,985) | 3,272 |
Comprehensive loss | $ (18,643) | $ (20,918) | $ (34,220) | $ (63,788) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) $ in Thousands | Total | Common Stock (Class A and B) | Additional Paid-in-Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Beginning of the period (in shares) at Dec. 31, 2022 | 52,652,000 | ||||
Beginning of the period at Dec. 31, 2022 | $ 5,983 | $ 53 | $ 537,732 | $ (6,686) | $ (525,116) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation expense | 38,042 | 38,042 | |||
Issuance of common stock upon exercise of stock options (in shares) | 102,000 | ||||
Issuance of common stock upon exercise of stock options | 1,457 | 1,457 | |||
Issuance of common stock under employee stock purchase plan (in shares) | 107,000 | ||||
Issuance of common stock under employee stock purchase plan | 5,546 | 5,546 | |||
Issuance of restricted stock units (in shares) | 449,000 | ||||
Tax withholding related to net share settlements of stock-based compensation awards (in shares) | (78,000) | ||||
Tax withholding related to net share settlements of stock-based compensation awards | (7,228) | (7,228) | |||
Net loss | (46,150) | (46,150) | |||
Other comprehensive (loss) income | 3,280 | 3,280 | |||
End of period (in shares) at Mar. 31, 2023 | 53,232,000 | ||||
End of period at Mar. 31, 2023 | 930 | $ 53 | 575,549 | (3,406) | (571,266) |
Beginning of the period (in shares) at Dec. 31, 2022 | 52,652,000 | ||||
Beginning of the period at Dec. 31, 2022 | 5,983 | $ 53 | 537,732 | (6,686) | (525,116) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (67,060) | ||||
Other comprehensive (loss) income | 3,272 | ||||
End of period (in shares) at Jun. 30, 2023 | 53,533,000 | ||||
End of period at Jun. 30, 2023 | 157 | $ 54 | 595,693 | (3,414) | (592,176) |
Beginning of the period (in shares) at Mar. 31, 2023 | 53,232,000 | ||||
Beginning of the period at Mar. 31, 2023 | 930 | $ 53 | 575,549 | (3,406) | (571,266) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation expense | 20,610 | 20,610 | |||
Issuance of common stock upon exercise of stock options (in shares) | 47,000 | ||||
Issuance of common stock upon exercise of stock options | 747 | $ 1 | 746 | ||
Issuance of restricted stock units (in shares) | 266,000 | ||||
Tax withholding related to net share settlements of stock-based compensation awards (in shares) | (12,000) | ||||
Tax withholding related to net share settlements of stock-based compensation awards | (1,212) | (1,212) | |||
Net loss | (20,910) | (20,910) | |||
Other comprehensive (loss) income | (8) | (8) | |||
End of period (in shares) at Jun. 30, 2023 | 53,533,000 | ||||
End of period at Jun. 30, 2023 | 157 | $ 54 | 595,693 | (3,414) | (592,176) |
Beginning of the period (in shares) at Dec. 31, 2023 | 54,179,000 | ||||
Beginning of the period at Dec. 31, 2023 | (89,390) | $ 54 | 562,942 | 255 | (652,641) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation expense | 23,007 | 23,007 | |||
Issuance of common stock upon exercise of stock options (in shares) | 19,000 | ||||
Issuance of common stock upon exercise of stock options | 302 | $ 1 | 301 | ||
Issuance of common stock under employee stock purchase plan (in shares) | 88,000 | ||||
Issuance of common stock under employee stock purchase plan | 7,113 | 7,113 | |||
Issuance of restricted stock units (in shares) | 590,000 | ||||
Tax withholding related to net share settlements of stock-based compensation awards (in shares) | (91,000) | ||||
Tax withholding related to net share settlements of stock-based compensation awards | (8,611) | (8,611) | |||
Net loss | (11,687) | (11,687) | |||
Other comprehensive (loss) income | (3,890) | (3,890) | |||
End of period (in shares) at Mar. 31, 2024 | 54,785,000 | ||||
End of period at Mar. 31, 2024 | (83,156) | $ 55 | 584,752 | (3,635) | (664,328) |
Beginning of the period (in shares) at Dec. 31, 2023 | 54,179,000 | ||||
Beginning of the period at Dec. 31, 2023 | $ (89,390) | $ 54 | 562,942 | 255 | (652,641) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of stock options (in shares) | 37,265 | ||||
Net loss | $ (29,235) | ||||
Other comprehensive (loss) income | (4,985) | ||||
End of period (in shares) at Jun. 30, 2024 | 54,914,000 | ||||
End of period at Jun. 30, 2024 | (77,747) | $ 55 | 608,804 | (4,730) | (681,876) |
Beginning of the period (in shares) at Mar. 31, 2024 | 54,785,000 | ||||
Beginning of the period at Mar. 31, 2024 | (83,156) | $ 55 | 584,752 | (3,635) | (664,328) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation expense | 25,402 | 25,402 | |||
Issuance of common stock upon exercise of stock options (in shares) | 18,000 | ||||
Issuance of common stock upon exercise of stock options | 290 | 290 | |||
Issuance of restricted stock units (in shares) | 131,000 | ||||
Tax withholding related to net share settlements of stock-based compensation awards (in shares) | (20,000) | ||||
Tax withholding related to net share settlements of stock-based compensation awards | (1,640) | (1,640) | |||
Net loss | (17,548) | (17,548) | |||
Other comprehensive (loss) income | (1,095) | (1,095) | |||
End of period (in shares) at Jun. 30, 2024 | 54,914,000 | ||||
End of period at Jun. 30, 2024 | $ (77,747) | $ 55 | $ 608,804 | $ (4,730) | $ (681,876) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Cash flows from operating activities | ||||
Net loss | $ (17,548) | $ (20,910) | $ (29,235) | $ (67,060) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||||
Depreciation and amortization | 2,564 | 2,867 | 5,086 | 5,667 |
Stock-based compensation expense | 25,402 | 20,610 | 48,409 | 58,652 |
Provision for (recovery of) doubtful accounts | 20 | (57) | (103) | 49 |
Realized loss on sale of available-for-sale securities, net | 0 | 147 | 0 | 708 |
Amortization of premiums and discounts on marketable securities, net | (3,156) | (1,572) | (6,905) | (2,600) |
Amortization of issuance costs and debt discount | 609 | 325 | 1,217 | 650 |
Deferred income tax | 4 | 7 | (291) | (3) |
Changes in assets and liabilities: | ||||
Accounts receivable | (33,267) | (6,886) | 3,680 | 22,477 |
Deferred costs | (11,599) | 1,362 | (10,194) | 3,132 |
Operating lease right-of-use asset | 1,172 | 1,268 | 2,598 | 2,563 |
Other receivables | 4,347 | (381) | 4,541 | (286) |
Prepaid expenses and other | 4,693 | (1,705) | 2,420 | (7,437) |
Other assets | (565) | 510 | (1,655) | 436 |
Accounts payable | (1,884) | (1,088) | 2,842 | (881) |
Deferred revenue | 13,079 | 21,060 | (4,447) | 11,105 |
Operating lease liability | (966) | (1,207) | (1,953) | (2,379) |
Accrued expenses and other liabilities | 17,081 | 11,629 | 8,820 | 6,749 |
Net cash (used in) provided by operating activities | (14) | 25,979 | 24,830 | 31,542 |
Cash flows from investing activities | ||||
Purchase of property and equipment | (108) | (639) | (311) | (837) |
Purchase of marketable securities | (34,986) | (51,204) | (151,553) | (177,019) |
Sale of marketable securities | 0 | 21,339 | 4,609 | 65,052 |
Maturities of marketable securities | 107,100 | 8,000 | 236,740 | 39,905 |
Acquisitions, net of cash acquired | (98,280) | 0 | (98,280) | 0 |
Purchase of intangible assets | (41) | (40) | (72) | (119) |
Net cash used in investing activities | (26,315) | (22,544) | (8,867) | (73,018) |
Cash flows from financing activities | ||||
Proceeds from option exercises | 290 | 747 | 592 | 2,204 |
Taxes paid related to net share settlements of stock-based compensation awards | (1,640) | (1,212) | (10,251) | (8,440) |
Proceeds from shares issued in connection with employee stock purchase plan | 0 | 0 | 7,113 | 5,546 |
Principal payments on finance lease obligations | (132) | (125) | (261) | (249) |
Net cash used in financing activities | (1,482) | (590) | (2,807) | (939) |
Effect of foreign exchange rates on cash | (358) | 609 | (1,465) | 1,157 |
Net (decrease) increase in cash, cash equivalents and restricted cash | (28,169) | 3,454 | 11,691 | (41,258) |
Cash, cash equivalents and restricted cash at beginning of period | 296,581 | 195,485 | 256,721 | 240,197 |
Cash, cash equivalents and restricted cash at end of period | 268,412 | 198,939 | 268,412 | 198,939 |
Supplemental cash flow disclosure | ||||
Cash paid for interest | 197 | 204 | 5,102 | 2,350 |
Cash paid for income taxes, net of refunds | 2,181 | 1,198 | 3,133 | 1,521 |
Reconciliation of cash, cash equivalents, and restricted cash to the consolidated balance sheets | ||||
Cash and cash equivalents at end of period | 267,897 | 198,939 | 267,897 | 198,939 |
Restricted cash included within prepaid expenses and other at end of period | 515 | 0 | 515 | 0 |
Total cash, cash equivalents, and restricted cash at end of period shown in the consolidated statements of cash flows | $ 268,412 | $ 198,939 | $ 268,412 | $ 198,939 |
Organization and Significant Ac
Organization and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Significant Accounting Policies | Organization and Significant Accounting Policies Organization Workiva Inc., a Delaware corporation, and its wholly-owned subsidiaries (the “Company” or “we” or “us”) is on a mission to power transparent reporting for a better world. We believe that all stakeholders, including consumers, employees, shareholders, and regulators expect more from business – more action, transparency, and disclosure of financial and non-financial information. We build solutions to meet that demand and streamline processes, connect data and teams, and ensure consistency – all within the Workiva platform, the world’s leading cloud platform for assured integrated reporting. Our operational headquarters are located in Ames, Iowa, with additional offices located in the United States, Europe, the Asia-Pacific region and Canada. Basis of Presentation and Principles of Consolidation The financial information presented in the accompanying unaudited condensed consolidated financial statements has been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and in accordance with rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The condensed consolidated balance sheet data as of December 31, 2023 was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, consisting primarily of normal recurring accruals, necessary for a fair presentation of our financial position and results of operations. The operating results for the three and six months ended June 30, 2024 are not necessarily indicative of the results expected for the full year ending December 31, 2024. Seasonality affects our revenue, expenses and cash flows from operations. Revenue from professional services is generally higher in the first quarter as many of our customers file their 10-K in the first calendar quarter. Our sales and marketing expense also has some degree of seasonality. Sales and marketing expenses have historically been higher in the third quarter due to our annual user conference in September. In addition, the timing of cash bonus payments to employees during the first and fourth calendar quarters may result in some seasonality in operating cash flow. The condensed consolidated financial information should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in this report and the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 filed with the SEC on February 20, 2024. The unaudited condensed consolidated financial statements include the accounts of Workiva Inc. and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. We base our estimates on historical experience and various other assumptions believed to be reasonable. These estimates include, but are not limited to, the allowance for doubtful accounts, the determination of the relative selling prices of our services, the measurement of material rights, health insurance claims incurred but not yet reported, valuation of available-for-sale marketable securities, useful lives of deferred contract costs, intangible assets and property and equipment, goodwill, income taxes, discount rates used in the valuation of right-of-use assets and lease liabilities, and certain assumptions used in the valuation of equity awards. While these estimates are based on our best knowledge of current events and actions that may affect us in the future, actual results may differ materially from these estimates. Recently Adopted Accounting Pronouncements None. New Accounting Pronouncements Not Yet Adopted In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which expands disclosures about a public entity’s reportable segments and requires more enhanced information about a reportable segment’s expenses, interim segment profit or loss, and how a public entity’s chief operating decision maker uses reported segment profit or loss information in assessing segment performance and allocating resources. The standard is effective for annual periods beginning after December 15, 2023, with early adoption permitted. We are assessing the effect of adopting this standard on our consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which expands disclosures in an entity’s income tax rate reconciliation table and regarding cash taxes paid both in the U.S. and foreign jurisdictions. The standard is effective for annual periods beginning after December 15, 2024, with early adoption permitted. We are assessing the effect of adopting this standard on our consolidated financial statements and related disclosures. |
Supplemental Consolidated Balan
Supplemental Consolidated Balance Sheet Information | 6 Months Ended |
Jun. 30, 2024 | |
Payables and Accruals [Abstract] | |
Supplemental Consolidated Balance Sheet Information | Supplemental Consolidated Balance Sheet Information Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following (in thousands): As of June 30, 2024 As of December 31, 2023 Accrued vacation $ 18,908 $ 15,356 Accrued commissions 15,796 11,969 Accrued bonuses 16,268 6,825 Accrued payroll 7,301 7,206 Estimated health insurance claims 2,685 3,462 Accrued interest 3,190 3,510 ESPP employee contributions 7,627 7,540 Customer deposits 23,537 24,763 Operating lease liabilities 4,457 5,256 Accrued other liabilities 13,570 12,034 $ 113,339 $ 97,921 |
Cash Equivalents and Marketable
Cash Equivalents and Marketable Securities | 6 Months Ended |
Jun. 30, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Cash Equivalents and Marketable Securities | Cash Equivalents and Marketable Securities At June 30, 2024, cash equivalents and marketable securities consisted of the following (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value Money market funds $ 146,211 $ — $ — $ 146,211 Commercial paper 9,857 — — 9,857 U.S. treasury debt securities 222,378 27 (360) 222,045 U.S. government agency debt securities 89,874 4 (131) 89,747 Corporate debt securities 153,605 51 (370) 153,286 $ 621,925 $ 82 $ (861) $ 621,146 Included in cash and cash equivalents $ 148,190 $ — $ — $ 148,190 Included in marketable securities $ 473,735 $ 82 $ (861) $ 472,956 At December 31, 2023, cash equivalents and marketable securities consisted of the following (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value Money market funds $ 108,826 $ — $ — $ 108,826 Commercial paper 56,115 — — 56,115 U.S. treasury debt securities 224,136 531 (80) 224,587 U.S. government agency debt securities 110,036 256 (15) 110,277 Corporate debt securities 165,341 497 (187) 165,651 Foreign government debt securities 999 — (7) 992 $ 665,453 $ 1,284 $ (289) $ 666,448 Included in cash and cash equivalents $ 108,826 $ — $ — $ 108,826 Included in marketable securities $ 556,627 $ 1,284 $ (289) $ 557,622 The contractual maturities of the investments classified as marketable securities are as follows (in thousands): As of June 30, 2024 Due within one year $ 334,821 Due in one to two years 138,135 $ 472,956 The following table presents gross unrealized losses and fair values for those cash equivalents and marketable securities that were in an unrealized loss position as of June 30, 2024, aggregated by investment category and the length of time that individual securities have been in a continuous loss position (in thousands): As of June 30, 2024 Less than 12 months 12 months or greater Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. treasury debt securities $ 177,186 $ (325) $ 8,949 $ (35) U.S. government agency debt securities 75,128 (131) — — Corporate debt securities 106,724 (327) 13,629 (43) Total $ 359,038 $ (783) $ 22,578 $ (78) We do not believe the unrealized losses represent credit losses based on our evaluation of available evidence as of June 30, 2024, which includes an assessment of whether it is more likely than not we will be required to sell the investment before recovery of the investment's amortized cost basis. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements We determine the fair values of our financial instruments based on the fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value assumes that the transaction to sell the asset or transfer the liability occurs in the principal or most advantageous market for the asset or liability and establishes that the fair value of an asset or liability shall be determined based on the assumptions that market participants would use in pricing the asset or liability. The classification of a financial asset or liability within the hierarchy is based upon the lowest level input that is significant to the fair value measurement. The fair value hierarchy prioritizes the inputs into three levels that may be used to measure fair value: Level 1 - Inputs are unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 - Inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 - Inputs are unobservable inputs based on our assumptions. Financial Assets Cash equivalents primarily consist of AAA-rated money market funds with overnight liquidity and no stated maturities. We classified cash equivalents as Level 1 due to the short-term nature of these instruments and measured the fair value based on quoted prices in active markets for identical assets. When available, our marketable securities are valued using quoted prices for identical instruments in active markets. If we are unable to value our marketable securities using quoted prices for identical instruments in active markets, we value our investments using broker reports that utilize quoted market prices for comparable instruments. We validate, on a sample basis, the derived prices provided by the brokers by comparing their assessment of the fair values of our investments against the fair values of the portfolio balances of another third-party professional pricing service. As of June 30, 2024, all of our marketable securities were valued using quoted prices for comparable instruments in active markets and are classified as Level 2. Based on our valuation of our money market funds and marketable securities, we concluded that they are classified in either Level 1 or Level 2, and we have no financial assets measured using Level 3 inputs on a recurring basis. The following table presents information about our assets that are measured at fair value on a recurring basis using the above input categories (in thousands): Fair Value Measurements as of June 30, 2024 Fair Value Measurements as of December 31, 2023 Description Total Level 1 Level 2 Total Level 1 Level 2 Money market funds $ 146,211 $ 146,211 $ — $ 108,826 $ 108,826 $ — Commercial paper 9,857 — 9,857 56,115 — 56,115 U.S. treasury debt securities 222,045 — 222,045 224,587 — 224,587 U.S. government agency debt securities 89,747 — 89,747 110,277 — 110,277 Corporate debt securities 153,286 — 153,286 165,651 — 165,651 Foreign government debt securities — — — 992 — 992 $ 621,146 $ 146,211 $ 474,935 $ 666,448 $ 108,826 $ 557,622 Included in cash and cash equivalents $ 148,190 $ 108,826 Included in marketable securities $ 472,956 $ 557,622 Convertible Senior Notes As of June 30, 2024, the fair value of our convertible senior notes due in 2026 and 2028 was $78.2 million and $613.8 million, respectively. The fair value was determined based on the quoted price of the convertible senior notes in an over-the-counter market on the last trading day of the reporting period and has been classified as Level 2 in the fair value hierarchy. See Note 5 to the condensed consolidated financial statements for more information. |
Convertible Senior Notes
Convertible Senior Notes | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Convertible Senior Notes | Convertible Senior Notes The following table presents details of our convertible senior notes, which are further discussed below (original principal in thousands): Month Issued Maturity Date Free Convertibility Date Redemption Date Original Principal (including overallotment) Initial Conversion Rate per $1,000 Principal Initial Conversion Price 2026 Notes August 2019 August 15, 2026 May 15, 2026 August 21, 2023 $ 345,000 12.4756 $ 80.16 2028 Notes August 2023 August 15, 2028 May 15, 2028 August 21, 2026 $ 702,000 7.4690 $ 133.89 In August 2019, we issued $345.0 million aggregate principal amount of 1.125% convertible senior notes due 2026 in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended, including the exercise in full by the initial purchasers of their option to purchase an additional $45.0 million principal amount (the "2026 Notes”). The 2026 Notes bear interest at a fixed rate of 1.125% per annum, payable semi-annually in arrears on February 15 and August 15 of each year, commencing on February 15, 2020. Proceeds from the issuance of the 2026 Notes totaled $335.9 million, net of initial purchaser discounts and issuance costs. In August 2023, we issued $702.0 million aggregate principal amount of 1.250% convertible senior notes due 2028 in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended, including the partial exercise of 77.0 million principal amount by the initial purchasers of their option to purchase up to an additional $100 million principal amount (the "2028 Notes”). The 2028 Notes bear interest at a fixed rate of 1.250% per annum, payable semi-annually in arrears on February 15 and August 15 of each year, commencing on February 15, 2024. Proceeds from the issuance of the 2028 Notes totaled $691.1 million, net of initial purchaser discounts and issuance costs. The 2026 Notes and the 2028 Notes are together referred to as the "Notes". The Notes were issued pursuant to an indenture and are senior, unsecured obligations of the Company. The 2028 Notes will rank equally with all of the Company’s existing and future senior unsecured indebtedness, including the Company’s outstanding 2026 Notes. Holders of the Notes may convert all or a portion of their Notes prior to the close of business on their respective Free Convertibility dates, in multiples of $1,000 principal amount, only under the following circumstances: • during any calendar quarter commencing after the calendar quarter in which the respective Notes were issued (and only during such calendar quarter), if the last reported sale price of our Class A common stock, par value $0.001 per share (which we refer to in this offering memorandum as our “Class A common stock”), for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; • during the five consecutive business day period immediately following any ten consecutive trading day period (the “measurement period”) in which the trading price (as defined below) per $1,000 principal amount of Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our Class A common stock and the conversion rate on each such trading day; • if we call any or all of the Notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date; or • upon the occurrence of certain specified corporate events as set forth in the relevant indenture. On or after the relevant Free Convertibility Date, holders of the Notes may convert their Notes at any time until the close of business on the second scheduled trading day immediately preceding the maturity date of the Notes. Upon conversion, we will pay or deliver, as the case may be, cash, shares of our Class A common stock or a combination of cash and shares of our Class A common stock, at our election, in the manner and subject to the terms and conditions provided in the indenture. The Company may redeem for cash all or any portion of the Notes, at its option, on or after the respective Redemption Date, if the last reported sale price of the Company’s common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, plus any accrued and unpaid interest to, but excluding, the respective Redemption Date. During the second quarter of 2024 none of the conversion conditions were met and therefore the Notes are not convertible at the option of the holders. As a result, the Notes were classified as non-current liabilities on the condensed consolidated balance sheet as of June 30, 2024. Interest expense representing the amortization of issuance costs as well as contractual interest expense is amortized to interest expense at an effective interest rate of 1.5% and 1.6% over the term of the 2026 Notes and 2028 Notes, respectively. As of June 30, 2024, the remaining life of the 2026 Notes and 2028 Notes were approximately 2.1 years and 4.2 years, respectively. The net carrying amount of the Notes was as follows (in thousands): June 30, 2024 December 31, 2023 2026 Notes 2028 Notes 2026 Notes 2028 Notes Principal $ 71,242 $ 702,000 $ 71,242 $ 702,000 Unamortized issuance costs (576) (8,994) (711) (10,076) Net carrying amount $ 70,666 $ 693,006 $ 70,531 $ 691,924 Interest expense related to the Notes was as follows (in thousands): Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 Contractual interest expense $ 2,394 $ 970 $ 4,788 $ 1,940 Amortization of issuance costs 609 325 1,217 650 Total interest expense $ 3,003 $ 1,295 $ 6,005 $ 2,590 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation From time to time we may become involved in legal proceedings or be subject to claims arising in the ordinary course of our business. We evaluate the development of legal matters on a regular basis and accrue a liability when we believe a loss is probable and the amount can be reasonably estimated. Although the results of litigation and claims cannot be predicted with certainty, we currently believe that the final outcome of any currently pending legal proceedings to which we are a party will not have a material adverse effect on our business, operating results, financial condition or cash flows. Regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation We grant stock-based incentive awards to attract, motivate and retain qualified employees, non-employee directors and consultants, and to align their financial interests with those of our stockholders. We utilize stock-based compensation in the form of restricted stock units, performance restricted stock units, options to purchase Class A common stock and Employee Stock Purchase Plan ("ESPP") purchase rights. Prior to our corporate conversion in December 2014, awards were provided under the 2009 Unit Incentive Plan (“the 2009 Plan”). The 2009 Plan was amended to provide that no further awards will be issued thereunder, and our board of directors and stockholders adopted and approved our 2014 Equity Incentive Plan (“the 2014 Plan” and, together with the 2009 Plan, “the Plans”). On May 30, 2024, stockholders approved an amendment to the 2014 Plan that increased the number of shares available for grant by 3,900,000. As of June 30, 2024, 5,212,217 shares of Class A common stock were available for grant under the 2014 Plan. Stock-Based Compensation Expense Stock-based compensation expense was recorded in the following cost and expense categories consistent with the respective employee or service provider’s related cash compensation (in thousands): Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 Cost of revenue Subscription and support $ 1,943 $ 1,413 $ 3,544 $ 2,485 Professional services 763 667 1,490 1,300 Operating expenses Research and development 5,152 4,825 9,793 9,522 Sales and marketing 8,490 6,703 16,528 13,661 General and administrative 9,054 7,002 17,054 31,684 Total $ 25,402 $ 20,610 $ 48,409 $ 58,652 Stock Options The following table summarizes the option activity under the Plans for the six months ended June 30, 2024: Options Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Outstanding at December 31, 2023 1,211,619 $ 14.46 2.3 Granted — — Forfeited — — Expired — — Exercised (37,265) 15.87 Outstanding at June 30, 2024 1,174,354 $ 14.41 1.8 Exercisable at June 30, 2024 1,174,354 $ 14.41 1.8 Restricted Stock Units and Performance Restricted Stock Units The following table summarizes the restricted stock unit and performance restricted stock unit activity under the Plans for the six months ended June 30, 2024: Number of Shares Weighted- Average Grant Date Fair Value Unvested at December 31, 2023 2,198,411 $ 97.17 Granted 1,115,127 92.39 Forfeited (102,589) 96.39 Vested (1) (705,626) 94.17 Unvested at June 30, 2024 2,505,323 $ 95.97 (1) During the six months ended June 30, 2024, in accordance with our Nonqualified Deferred Compensation Plan, recipients of 3,325 shares elected to defer settlement of their vested restricted stock units and 18,919 shares were released from deferral. Employee Stock Purchase Plan During the six months ended June 30, 2024, 88,047 shares of common stock were purchased under the ESPP at a weighted-average price of $80.79 per share, resulting in cash proceeds of $7.1 million. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Disaggregation of Revenue The following table presents our revenues disaggregated by type of good or service (in thousands): Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 Subscription and support $ 160,735 $ 136,772 $ 315,714 $ 266,436 XBRL professional services 14,027 14,431 31,620 31,164 Other services 2,741 3,819 5,836 7,611 Total revenues $ 177,503 $ 155,022 $ 353,170 $ 305,211 Deferred Revenue We recognized $145.2 million and $122.5 million of revenue during the three months ended June 30, 2024 and 2023, respectively, that was included in the deferred revenue balances at the beginning of the respective periods. We recognized $254.5 million and $212.6 million of revenue during the six months ended June 30, 2024 and 2023, respectively, that was included in the deferred revenue balances at the beginning of the respective periods. Transaction Price Allocated to the Remaining Performance Obligations |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | Intangible Assets and Goodwill The following table presents the components of net intangible assets (in thousands): As of June 30, 2024 As of December 31, 2023 Weighted Average Useful Life (Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Acquired technology 4.7 $ 26,261 $ (9,233) $ 17,028 $ 15,949 $ (7,471) $ 8,478 Acquired customer-related 10.0 16,319 (3,442) 12,877 15,427 (2,769) 12,658 Acquired trade names 2.9 2,152 (1,781) 371 2,172 (1,721) 451 Patents 10.0 3,222 (1,965) 1,257 3,150 (1,845) 1,305 Total 6.8 $ 47,954 $ (16,421) $ 31,533 $ 36,698 $ (13,806) $ 22,892 Amortization expense related to intangible assets was $1.4 million and $1.5 million for the three months ended June 30, 2024 and 2023, respectively, and $2.8 million and $3.1 million for the six months ended June 30, 2024 and 2023, respectively. As of June 30, 2024, expected remaining amortization expense of intangible assets by fiscal year is as follows (in thousands): Remainder of 2024 $ 3,830 2025 6,926 2026 5,606 2027 4,319 2028 3,885 Thereafter 6,967 Total expected amortization expense $ 31,533 The changes in the carrying amount of goodwill were as follows (in thousands): December 31, 2023 $ 112,097 Acquisition 89,410 Foreign currency translation adjustments (2,305) June 30, 2024 $ 199,202 |
Net Loss Per Share
Net Loss Per Share | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss Per Share Net loss per share is allocated based on the contractual participation rights of the Class A and Class B common shares as if the loss for the year has been distributed. As the liquidation and dividend rights are identical, the net loss is allocated on a proportionate basis. A reconciliation of the denominator used in the calculation of basic and diluted loss per share is as follows (in thousands, except share and per share data): Three months ended June 30, 2024 June 30, 2023 Class A Class B Class A Class B Numerator Net loss $ (16,325) $ (1,223) $ (19,421) $ (1,489) Denominator Weighted-average common shares outstanding - basic and diluted 51,331,579 3,845,583 50,164,380 3,845,583 Basic and diluted net loss per share $ (0.32) $ (0.32) $ (0.39) $ (0.39) Six months ended June 30, 2024 June 30, 2023 Class A Class B Class A Class B Numerator Net loss $ (27,193) $ (2,042) $ (62,253) $ (4,807) Denominator Weighted-average common shares outstanding - basic and diluted 51,200,924 3,845,583 49,990,734 3,860,252 Basic and diluted net loss per share $ (0.53) $ (0.53) $ (1.25) $ (1.25) The anti-dilutive securities excluded from the weighted-average shares used to calculate the diluted net loss per common share were as follows: As of June 30, 2024 June 30, 2023 Shares subject to outstanding common stock options 1,174,354 1,359,116 Shares subject to unvested restricted stock units and performance restricted stock units 2,505,323 2,261,742 Shares issuable pursuant to the ESPP 96,271 96,892 Shares underlying our convertible senior notes 6,132,025 4,304,082 |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2024 | |
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | |
Acquisitions | Acquisitions On June 17, 2024, we acquired all of the issued and outstanding equity interests in Sustain.Life, Inc. (“Sustain.Life”), a leading provider of carbon accounting solutions to launch Workiva Carbon, for $98.3 million net of cash acquired of $0.3 million. Workiva Carbon is an audit-ready carbon accounting solution that helps organizations measure, manage, track, and report carbon emissions, including data from third-party supply chain partners. Coupled with Workiva's ESG reporting solution, companies can now collect key business data, calculate critical metrics, set data-driven ESG strategy, measure progress, and report results all in the Workiva platform. The transaction was accounted for as a business combination. The purchase price has been preliminarily allocated to the assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition. The fair values of goodwill and definite-lived intangible assets acquired in the acquisition were externally estimated primarily based on the replacement cost approach. The fair values of assets acquired and liabilities assumed may change over the measurement period as additional information is received. The primary area subject to change includes our review of the valuation of intangible assets. We expect to finalize the valuation as soon as practicable, but not later than one year from the acquisition date. The excess of the purchase price over the fair value of the net assets acquired was allocated to goodwill. The goodwill recognized was primarily attributable to the assembled workforce, operational synergies, and strategic benefits that are expected to be achieved and is not deductible for income tax purposes. The following table presents a preliminary allocation of the purchase price to the assets acquired and liabilities assumed at the date of acquisition (in thousands) : Cash consideration $ 98,532 Total consideration $ 98,532 Cash $ 251 Accounts receivable, net 384 Other receivables 4,066 Prepaid expenses and other 239 Intangible assets 11,890 Goodwill 89,410 Accounts payable (211) Accrued liabilities (5,194) Deferred revenue (1,042) Other long-term liabilities (1,261) Fair value of assets and liabilities $ 98,532 We incurred costs related to the acquisition of approximately $1.1 million during the three months ended June 30, 2024. All acquisition related costs were expensed as incurred and have been recorded in general and administrative expenses in our condensed consolidated statements of operations. The amount of revenues and net loss from the acquisition included in our condensed consolidated statements of operations for the three and six months ended June 30, 2024 were not material. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On July 30, 2024, our board of directors authorized a share repurchase program to repurchase up to $100.0 million of the Company’s outstanding Class A common stock. Under this new program, the Company may purchase its Class A common stock from time to time in the open market or through privately negotiated transactions, pursuant to Rule 10b5-1 trading plans or other available means, each in compliance with Rule 10b-18 under the Exchange Act. The timing, manner, price, and amount of the repurchase will be subject to the discretion of the Company’s management. The repurchase program does not obligate the Company to acquire any particular amount of Class A common stock, and it may be suspended or discontinued at any time. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||||
Net loss | $ (17,548) | $ (11,687) | $ (20,910) | $ (46,150) | $ (29,235) | $ (67,060) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Organization and Significant _2
Organization and Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The financial information presented in the accompanying unaudited condensed consolidated financial statements has been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and in accordance with rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The condensed consolidated balance sheet data as of December 31, 2023 was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, consisting primarily of normal recurring accruals, necessary for a fair presentation of our financial position and results of operations. The operating results for the three and six months ended June 30, 2024 are not necessarily indicative of the results expected for the full year ending December 31, 2024. |
Principles of Consolidation | All intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. We base our estimates on historical experience and various other assumptions believed to be reasonable. These estimates include, but are not limited to, the allowance for doubtful accounts, the determination of the relative selling prices of our services, the measurement of material rights, health insurance claims incurred but not yet reported, valuation of available-for-sale marketable securities, useful lives of deferred contract costs, intangible assets and property and equipment, goodwill, income taxes, discount rates used in the valuation of right-of-use assets and lease liabilities, and certain assumptions used in the valuation of equity awards. While these estimates are based on our best knowledge of current events and actions that may affect us in the future, actual results may differ materially from these estimates. |
Recently Adopted Accounting Pronouncements and New Accounting Pronouncements Not Yet Adopted | None. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which expands disclosures about a public entity’s reportable segments and requires more enhanced information about a reportable segment’s expenses, interim segment profit or loss, and how a public entity’s chief operating decision maker uses reported segment profit or loss information in assessing segment performance and allocating resources. The standard is effective for annual periods beginning after December 15, 2023, with early adoption permitted. We are assessing the effect of adopting this standard on our consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which expands disclosures in an entity’s income tax rate reconciliation table and regarding cash taxes paid both in the U.S. and foreign jurisdictions. The standard is effective for annual periods beginning after December 15, 2024, with early adoption permitted. We are assessing the effect of adopting this standard on our consolidated financial statements and related disclosures. |
Fair Value of Financial Instruments | Cash equivalents primarily consist of AAA-rated money market funds with overnight liquidity and no stated maturities. We classified cash equivalents as Level 1 due to the short-term nature of these instruments and measured the fair value based on quoted prices in active markets for identical assets. When available, our marketable securities are valued using quoted prices for identical instruments in active markets. If we are unable to value our marketable securities using quoted prices for identical instruments in active markets, we value our investments using broker reports that utilize quoted market prices for comparable instruments. We validate, on a sample basis, the derived prices provided by the brokers by comparing their assessment of the fair values of our investments against the fair values of the portfolio balances of another third-party professional pricing service. |
Supplemental Consolidated Bal_2
Supplemental Consolidated Balance Sheet Information (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following (in thousands): As of June 30, 2024 As of December 31, 2023 Accrued vacation $ 18,908 $ 15,356 Accrued commissions 15,796 11,969 Accrued bonuses 16,268 6,825 Accrued payroll 7,301 7,206 Estimated health insurance claims 2,685 3,462 Accrued interest 3,190 3,510 ESPP employee contributions 7,627 7,540 Customer deposits 23,537 24,763 Operating lease liabilities 4,457 5,256 Accrued other liabilities 13,570 12,034 $ 113,339 $ 97,921 |
Cash Equivalents and Marketab_2
Cash Equivalents and Marketable Securities (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Marketable Securities | At June 30, 2024, cash equivalents and marketable securities consisted of the following (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value Money market funds $ 146,211 $ — $ — $ 146,211 Commercial paper 9,857 — — 9,857 U.S. treasury debt securities 222,378 27 (360) 222,045 U.S. government agency debt securities 89,874 4 (131) 89,747 Corporate debt securities 153,605 51 (370) 153,286 $ 621,925 $ 82 $ (861) $ 621,146 Included in cash and cash equivalents $ 148,190 $ — $ — $ 148,190 Included in marketable securities $ 473,735 $ 82 $ (861) $ 472,956 At December 31, 2023, cash equivalents and marketable securities consisted of the following (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value Money market funds $ 108,826 $ — $ — $ 108,826 Commercial paper 56,115 — — 56,115 U.S. treasury debt securities 224,136 531 (80) 224,587 U.S. government agency debt securities 110,036 256 (15) 110,277 Corporate debt securities 165,341 497 (187) 165,651 Foreign government debt securities 999 — (7) 992 $ 665,453 $ 1,284 $ (289) $ 666,448 Included in cash and cash equivalents $ 108,826 $ — $ — $ 108,826 Included in marketable securities $ 556,627 $ 1,284 $ (289) $ 557,622 |
Schedule of Cash and Cash Equivalents | At June 30, 2024, cash equivalents and marketable securities consisted of the following (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value Money market funds $ 146,211 $ — $ — $ 146,211 Commercial paper 9,857 — — 9,857 U.S. treasury debt securities 222,378 27 (360) 222,045 U.S. government agency debt securities 89,874 4 (131) 89,747 Corporate debt securities 153,605 51 (370) 153,286 $ 621,925 $ 82 $ (861) $ 621,146 Included in cash and cash equivalents $ 148,190 $ — $ — $ 148,190 Included in marketable securities $ 473,735 $ 82 $ (861) $ 472,956 At December 31, 2023, cash equivalents and marketable securities consisted of the following (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value Money market funds $ 108,826 $ — $ — $ 108,826 Commercial paper 56,115 — — 56,115 U.S. treasury debt securities 224,136 531 (80) 224,587 U.S. government agency debt securities 110,036 256 (15) 110,277 Corporate debt securities 165,341 497 (187) 165,651 Foreign government debt securities 999 — (7) 992 $ 665,453 $ 1,284 $ (289) $ 666,448 Included in cash and cash equivalents $ 108,826 $ — $ — $ 108,826 Included in marketable securities $ 556,627 $ 1,284 $ (289) $ 557,622 |
Schedule of Investments Classified by Contractual Maturity Date | The contractual maturities of the investments classified as marketable securities are as follows (in thousands): As of June 30, 2024 Due within one year $ 334,821 Due in one to two years 138,135 $ 472,956 |
Schedule of Available-for-sale Securities, Continuous Unrealized Loss Position | The following table presents gross unrealized losses and fair values for those cash equivalents and marketable securities that were in an unrealized loss position as of June 30, 2024, aggregated by investment category and the length of time that individual securities have been in a continuous loss position (in thousands): As of June 30, 2024 Less than 12 months 12 months or greater Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. treasury debt securities $ 177,186 $ (325) $ 8,949 $ (35) U.S. government agency debt securities 75,128 (131) — — Corporate debt securities 106,724 (327) 13,629 (43) Total $ 359,038 $ (783) $ 22,578 $ (78) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets Measured on Recurring Basis | The following table presents information about our assets that are measured at fair value on a recurring basis using the above input categories (in thousands): Fair Value Measurements as of June 30, 2024 Fair Value Measurements as of December 31, 2023 Description Total Level 1 Level 2 Total Level 1 Level 2 Money market funds $ 146,211 $ 146,211 $ — $ 108,826 $ 108,826 $ — Commercial paper 9,857 — 9,857 56,115 — 56,115 U.S. treasury debt securities 222,045 — 222,045 224,587 — 224,587 U.S. government agency debt securities 89,747 — 89,747 110,277 — 110,277 Corporate debt securities 153,286 — 153,286 165,651 — 165,651 Foreign government debt securities — — — 992 — 992 $ 621,146 $ 146,211 $ 474,935 $ 666,448 $ 108,826 $ 557,622 Included in cash and cash equivalents $ 148,190 $ 108,826 Included in marketable securities $ 472,956 $ 557,622 |
Convertible Senior Notes (Table
Convertible Senior Notes (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Convertible Debt | The following table presents details of our convertible senior notes, which are further discussed below (original principal in thousands): Month Issued Maturity Date Free Convertibility Date Redemption Date Original Principal (including overallotment) Initial Conversion Rate per $1,000 Principal Initial Conversion Price 2026 Notes August 2019 August 15, 2026 May 15, 2026 August 21, 2023 $ 345,000 12.4756 $ 80.16 2028 Notes August 2023 August 15, 2028 May 15, 2028 August 21, 2026 $ 702,000 7.4690 $ 133.89 The net carrying amount of the Notes was as follows (in thousands): June 30, 2024 December 31, 2023 2026 Notes 2028 Notes 2026 Notes 2028 Notes Principal $ 71,242 $ 702,000 $ 71,242 $ 702,000 Unamortized issuance costs (576) (8,994) (711) (10,076) Net carrying amount $ 70,666 $ 693,006 $ 70,531 $ 691,924 Interest expense related to the Notes was as follows (in thousands): Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 Contractual interest expense $ 2,394 $ 970 $ 4,788 $ 1,940 Amortization of issuance costs 609 325 1,217 650 Total interest expense $ 3,003 $ 1,295 $ 6,005 $ 2,590 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock-based Compensation Expense | Stock-based compensation expense was recorded in the following cost and expense categories consistent with the respective employee or service provider’s related cash compensation (in thousands): Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 Cost of revenue Subscription and support $ 1,943 $ 1,413 $ 3,544 $ 2,485 Professional services 763 667 1,490 1,300 Operating expenses Research and development 5,152 4,825 9,793 9,522 Sales and marketing 8,490 6,703 16,528 13,661 General and administrative 9,054 7,002 17,054 31,684 Total $ 25,402 $ 20,610 $ 48,409 $ 58,652 |
Schedule of Stock-Option Activity | The following table summarizes the option activity under the Plans for the six months ended June 30, 2024: Options Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Outstanding at December 31, 2023 1,211,619 $ 14.46 2.3 Granted — — Forfeited — — Expired — — Exercised (37,265) 15.87 Outstanding at June 30, 2024 1,174,354 $ 14.41 1.8 Exercisable at June 30, 2024 1,174,354 $ 14.41 1.8 |
Schedule of Restricted Stock Units and Performance Restricted Stock Units Activity | The following table summarizes the restricted stock unit and performance restricted stock unit activity under the Plans for the six months ended June 30, 2024: Number of Shares Weighted- Average Grant Date Fair Value Unvested at December 31, 2023 2,198,411 $ 97.17 Granted 1,115,127 92.39 Forfeited (102,589) 96.39 Vested (1) (705,626) 94.17 Unvested at June 30, 2024 2,505,323 $ 95.97 (1) During the six months ended June 30, 2024, in accordance with our Nonqualified Deferred Compensation Plan, recipients of 3,325 shares elected to defer settlement of their vested restricted stock units and 18,919 shares were released from deferral. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents our revenues disaggregated by type of good or service (in thousands): Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 Subscription and support $ 160,735 $ 136,772 $ 315,714 $ 266,436 XBRL professional services 14,027 14,431 31,620 31,164 Other services 2,741 3,819 5,836 7,611 Total revenues $ 177,503 $ 155,022 $ 353,170 $ 305,211 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Assets | The following table presents the components of net intangible assets (in thousands): As of June 30, 2024 As of December 31, 2023 Weighted Average Useful Life (Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Acquired technology 4.7 $ 26,261 $ (9,233) $ 17,028 $ 15,949 $ (7,471) $ 8,478 Acquired customer-related 10.0 16,319 (3,442) 12,877 15,427 (2,769) 12,658 Acquired trade names 2.9 2,152 (1,781) 371 2,172 (1,721) 451 Patents 10.0 3,222 (1,965) 1,257 3,150 (1,845) 1,305 Total 6.8 $ 47,954 $ (16,421) $ 31,533 $ 36,698 $ (13,806) $ 22,892 |
Schedule of Expected Amortization Expense of Intangible Assets | As of June 30, 2024, expected remaining amortization expense of intangible assets by fiscal year is as follows (in thousands): Remainder of 2024 $ 3,830 2025 6,926 2026 5,606 2027 4,319 2028 3,885 Thereafter 6,967 Total expected amortization expense $ 31,533 |
Schedule of the Changes in the Carrying Amount of Goodwill | The changes in the carrying amount of goodwill were as follows (in thousands): December 31, 2023 $ 112,097 Acquisition 89,410 Foreign currency translation adjustments (2,305) June 30, 2024 $ 199,202 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | A reconciliation of the denominator used in the calculation of basic and diluted loss per share is as follows (in thousands, except share and per share data): Three months ended June 30, 2024 June 30, 2023 Class A Class B Class A Class B Numerator Net loss $ (16,325) $ (1,223) $ (19,421) $ (1,489) Denominator Weighted-average common shares outstanding - basic and diluted 51,331,579 3,845,583 50,164,380 3,845,583 Basic and diluted net loss per share $ (0.32) $ (0.32) $ (0.39) $ (0.39) Six months ended June 30, 2024 June 30, 2023 Class A Class B Class A Class B Numerator Net loss $ (27,193) $ (2,042) $ (62,253) $ (4,807) Denominator Weighted-average common shares outstanding - basic and diluted 51,200,924 3,845,583 49,990,734 3,860,252 Basic and diluted net loss per share $ (0.53) $ (0.53) $ (1.25) $ (1.25) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The anti-dilutive securities excluded from the weighted-average shares used to calculate the diluted net loss per common share were as follows: As of June 30, 2024 June 30, 2023 Shares subject to outstanding common stock options 1,174,354 1,359,116 Shares subject to unvested restricted stock units and performance restricted stock units 2,505,323 2,261,742 Shares issuable pursuant to the ESPP 96,271 96,892 Shares underlying our convertible senior notes 6,132,025 4,304,082 |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | |
Schedule of Assets Acquired and Liabilities Assumed | The following table presents a preliminary allocation of the purchase price to the assets acquired and liabilities assumed at the date of acquisition (in thousands) : Cash consideration $ 98,532 Total consideration $ 98,532 Cash $ 251 Accounts receivable, net 384 Other receivables 4,066 Prepaid expenses and other 239 Intangible assets 11,890 Goodwill 89,410 Accounts payable (211) Accrued liabilities (5,194) Deferred revenue (1,042) Other long-term liabilities (1,261) Fair value of assets and liabilities $ 98,532 |
Supplemental Consolidated Bal_3
Supplemental Consolidated Balance Sheet Information (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Accrued Expenses and Other Current Liabilities | ||
Accrued vacation | $ 18,908 | $ 15,356 |
Accrued commissions | 15,796 | 11,969 |
Accrued bonuses | 16,268 | 6,825 |
Accrued payroll | 7,301 | 7,206 |
Estimated health insurance claims | 2,685 | 3,462 |
Accrued interest | 3,190 | 3,510 |
ESPP employee contributions | 7,627 | 7,540 |
Customer deposits | 23,537 | 24,763 |
Operating lease liabilities | 4,457 | 5,256 |
Accrued other liabilities | 13,570 | 12,034 |
Accrued expenses and other current liabilities | $ 113,339 | $ 97,921 |
Cash Equivalents and Marketab_3
Cash Equivalents and Marketable Securities - Schedule of Marketable Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 |
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents, amortized cost | $ 267,897 | $ 256,100 | $ 198,939 |
Debt Securities, Available-for-sale [Line Items] | |||
Marketable securities, amortized cost | 473,735 | 556,627 | |
Marketable securities, unrealized gains | 82 | 1,284 | |
Marketable securities, unrealized losses | (861) | (289) | |
Marketable securities, aggregate fair value | 472,956 | 557,622 | |
Cash and cash equivalents and available-for-sale securities, amortized cost | 621,925 | 665,453 | |
Cash and cash equivalents and marketable securities, aggregate fair value | 621,146 | 666,448 | |
Commercial paper | |||
Debt Securities, Available-for-sale [Line Items] | |||
Marketable securities, amortized cost | 9,857 | 56,115 | |
Marketable securities, unrealized gains | 0 | 0 | |
Marketable securities, unrealized losses | 0 | 0 | |
Marketable securities, aggregate fair value | 9,857 | 56,115 | |
U.S. treasury debt securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Marketable securities, unrealized gains | 27 | 531 | |
Marketable securities, unrealized losses | (360) | (80) | |
Cash and cash equivalents and available-for-sale securities, amortized cost | 222,378 | 224,136 | |
Cash and cash equivalents and marketable securities, aggregate fair value | 222,045 | 224,587 | |
U.S. government agency debt securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Marketable securities, amortized cost | 89,874 | 110,036 | |
Marketable securities, unrealized gains | 4 | 256 | |
Marketable securities, unrealized losses | (131) | (15) | |
Marketable securities, aggregate fair value | 89,747 | 110,277 | |
Corporate debt securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Marketable securities, amortized cost | 153,605 | 165,341 | |
Marketable securities, unrealized gains | 51 | 497 | |
Marketable securities, unrealized losses | (370) | (187) | |
Marketable securities, aggregate fair value | 153,286 | 165,651 | |
Foreign government debt securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Marketable securities, amortized cost | 999 | ||
Marketable securities, unrealized gains | 0 | ||
Marketable securities, unrealized losses | (7) | ||
Marketable securities, aggregate fair value | 992 | ||
Money market funds | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents, amortized cost | 146,211 | 108,826 | |
Cash and cash equivalents, aggregate fair value | 146,211 | 108,826 | |
Cash Equivalents | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents, amortized cost | 148,190 | 108,826 | |
Cash and cash equivalents, aggregate fair value | $ 148,190 | $ 108,826 |
Cash Equivalents and Marketab_4
Cash Equivalents and Marketable Securities - Schedule of Contractual Maturities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Investments, Debt and Equity Securities [Abstract] | ||
Due within one year | $ 334,821 | |
Due in one to two years | 138,135 | |
Marketable securities | $ 472,956 | $ 557,622 |
Cash Equivalents and Marketab_5
Cash Equivalents and Marketable Securities - Continuous Unrealized Loss Position (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
Fair Value | |
Less than 12 months | $ 359,038 |
12 months or greater | 22,578 |
Unrealized Loss | |
Less than 12 months | (783) |
12 months or greater | (78) |
U.S. treasury debt securities | |
Fair Value | |
Less than 12 months | 177,186 |
12 months or greater | 8,949 |
Unrealized Loss | |
Less than 12 months | (325) |
12 months or greater | (35) |
U.S. government agency debt securities | |
Fair Value | |
Less than 12 months | 75,128 |
12 months or greater | 0 |
Unrealized Loss | |
Less than 12 months | (131) |
12 months or greater | 0 |
Corporate debt securities | |
Fair Value | |
Less than 12 months | 106,724 |
12 months or greater | 13,629 |
Unrealized Loss | |
Less than 12 months | (327) |
12 months or greater | $ (43) |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | $ 472,956 | $ 557,622 |
Cash and cash equivalents and marketable securities | 621,146 | 666,448 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 9,857 | 56,115 |
U.S. treasury debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents and marketable securities | 222,045 | 224,587 |
U.S. government agency debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 89,747 | 110,277 |
Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 153,286 | 165,651 |
Foreign government debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 992 | |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 146,211 | 108,826 |
Cash Equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 148,190 | 108,826 |
Level 2 | 2026 Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of convertible debt | 78,200 | |
Level 2 | 2028 Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of convertible debt | 613,800 | |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 472,956 | 557,622 |
Total assets measured at fair value | 621,146 | 666,448 |
Recurring | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 9,857 | 56,115 |
Recurring | U.S. treasury debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents and marketable securities | 222,045 | 224,587 |
Recurring | U.S. government agency debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 89,747 | 110,277 |
Recurring | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 153,286 | 165,651 |
Recurring | Foreign government debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 992 |
Recurring | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 146,211 | 108,826 |
Recurring | Cash Equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 148,190 | 108,826 |
Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 146,211 | 108,826 |
Recurring | Level 1 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Recurring | Level 1 | U.S. treasury debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents and marketable securities | 0 | 0 |
Recurring | Level 1 | U.S. government agency debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Recurring | Level 1 | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Recurring | Level 1 | Foreign government debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Recurring | Level 1 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 146,211 | 108,826 |
Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 474,935 | 557,622 |
Recurring | Level 2 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 9,857 | 56,115 |
Recurring | Level 2 | U.S. treasury debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents and marketable securities | 222,045 | 224,587 |
Recurring | Level 2 | U.S. government agency debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 89,747 | 110,277 |
Recurring | Level 2 | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 153,286 | 165,651 |
Recurring | Level 2 | Foreign government debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 992 |
Recurring | Level 2 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 0 | $ 0 |
Convertible Senior Notes - Summ
Convertible Senior Notes - Summary of Convertible Debt (Details) - Convertible debt | 1 Months Ended | |
Aug. 31, 2023 USD ($) $ / shares | Aug. 31, 2019 USD ($) $ / shares | |
2026 Notes | ||
Debt Instrument [Line Items] | ||
Original Principal (including overallotment) | $ | $ 345,000,000 | |
Initial Conversion Rate | 0.0124756 | |
Initial Conversion Price (in dollars per share) | $ / shares | $ 80.16 | |
2028 Notes | ||
Debt Instrument [Line Items] | ||
Original Principal (including overallotment) | $ | $ 702,000,000 | |
Initial Conversion Rate | 0.007469 | |
Initial Conversion Price (in dollars per share) | $ / shares | $ 133.89 |
Convertible Senior Notes - Narr
Convertible Senior Notes - Narrative (Details) | 1 Months Ended | 6 Months Ended | ||
Aug. 31, 2023 USD ($) day $ / shares | Aug. 31, 2019 USD ($) | Jun. 30, 2024 $ / shares | Dec. 31, 2023 $ / shares | |
Class A Common Stock | ||||
Debt Instrument [Line Items] | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | |
Convertible debt | Debt Conversion Terms, One | ||||
Debt Instrument [Line Items] | ||||
Threshold number of trading days (day) | day | 20 | |||
Threshold number of consecutive trading days (day) | day | 30 | |||
Threshold percentage of stock price trigger | 130% | |||
Redemption price, percentage | 100% | |||
Convertible debt | Debt Conversion Terms, Two | ||||
Debt Instrument [Line Items] | ||||
Threshold number of trading days (day) | day | 5 | |||
Threshold number of consecutive trading days (day) | day | 10 | |||
Threshold percentage of stock trading price | 98% | |||
Convertible debt | 2026 Notes | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt issued | $ 345,000,000 | |||
Stated interest percentage | 1.125% | |||
Proceeds from the issuance of convertible senior notes | $ 335,900,000 | |||
Effective interest percentage | 1.50% | |||
Remaining life of debt instrument | 2 years 1 month 6 days | |||
Convertible debt | 2026 Notes, over-allotment option | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt issued | $ 45,000,000 | |||
Convertible debt | 2028 Notes | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt issued | $ 702,000,000 | |||
Stated interest percentage | 1.25% | |||
Proceeds from the issuance of convertible senior notes | $ 691,100,000 | |||
Effective interest percentage | 1.60% | |||
Remaining life of debt instrument | 4 years 2 months 12 days | |||
Convertible debt | 2028 Notes, over-allotment option | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt issued | 77,000,000 | |||
Maximum face amount for over-allotment option | $ 100,000,000 |
Convertible Senior Notes - Net
Convertible Senior Notes - Net Carrying Amount of Convertible Debt (Details) - Convertible debt - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
2026 Notes | ||
Debt Instrument [Line Items] | ||
Principal | $ 71,242 | $ 71,242 |
Unamortized issuance costs | (576) | (711) |
Net carrying amount | 70,666 | 70,531 |
2028 Notes | ||
Debt Instrument [Line Items] | ||
Principal | 702,000 | 702,000 |
Unamortized issuance costs | (8,994) | (10,076) |
Net carrying amount | $ 693,006 | $ 691,924 |
Convertible Senior Notes - Su_2
Convertible Senior Notes - Summary of Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Debt Disclosure [Abstract] | ||||
Contractual interest expense | $ 2,394 | $ 970 | $ 4,788 | $ 1,940 |
Amortization of issuance costs | 609 | 325 | 1,217 | 650 |
Total interest expense | $ 3,003 | $ 1,295 | $ 6,005 | $ 2,590 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - 2014 Plan - Class A Common Stock - shares | Jun. 30, 2024 | May 30, 2024 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of additional shares available for grant (in shares) | 3,900,000 | |
Number of shares available for grant (in shares) | 5,212,217 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense | $ 25,402 | $ 20,610 | $ 48,409 | $ 58,652 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense | 5,152 | 4,825 | 9,793 | 9,522 |
Sales and marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense | 8,490 | 6,703 | 16,528 | 13,661 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense | 9,054 | 7,002 | 17,054 | 31,684 |
Subscription and support | Cost of revenue | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense | 1,943 | 1,413 | 3,544 | 2,485 |
Professional services | Cost of revenue | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense | $ 763 | $ 667 | $ 1,490 | $ 1,300 |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock Options (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 $ / shares shares | Dec. 31, 2023 $ / shares shares | |
Options (in shares): | ||
Outstanding beginning of the period (in shares) | shares | 1,211,619 | |
Granted (in shares) | shares | 0 | |
Forfeited (in shares) | shares | 0 | |
Expired (in shares) | shares | 0 | |
Exercised (in shares) | shares | (37,265) | |
Outstanding end of the period (in shares) | shares | 1,174,354 | 1,211,619 |
Exercisable (in shares) | shares | 1,174,354 | |
Weighted-Average Exercise Price (in dollars per share): | ||
Outstanding beginning of the period (in dollars per share) | $ / shares | $ 14.46 | |
Granted (in dollars per share) | $ / shares | 0 | |
Forfeited (in dollars per share) | $ / shares | 0 | |
Expired (in dollars per share) | $ / shares | 0 | |
Exercised (in dollars per share) | $ / shares | 15.87 | |
Outstanding end of the period (in dollars per share) | $ / shares | 14.41 | $ 14.46 |
Exercisable (in dollars per share) | $ / shares | $ 14.41 | |
Outstanding, weighted-average remaining contractual term (years) | 1 year 9 months 18 days | 2 years 3 months 18 days |
Exercisable, weighted-average remaining contractual term (years) | 1 year 9 months 18 days |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Units and Performance Restricted Stock Units (Details) | 6 Months Ended |
Jun. 30, 2024 $ / shares shares | |
Shares subject to unvested restricted stock units and performance restricted stock units | |
Number of Shares (in shares) | |
Unvested at beginning of period (in shares) | 2,198,411 |
Granted (in shares) | 1,115,127 |
Forfeited (in shares) | (102,589) |
Vested (in shares) | (705,626) |
Unvested at end of period (in shares) | 2,505,323 |
Weighted- Average Grant Date Fair Value (in dollars per share) | |
Unvested at beginning of period (in dollars per share) | $ / shares | $ 97.17 |
Granted (in dollars per share) | $ / shares | 92.39 |
Forfeited (in dollars per share) | $ / shares | 96.39 |
Vested (in dollars per share) | $ / shares | 94.17 |
Unvested at end of period (in dollars per share) | $ / shares | $ 95.97 |
Restricted stock units | |
Weighted- Average Grant Date Fair Value (in dollars per share) | |
Number of vested shares recipient elected to defer settlement (in shares) | 3,325 |
Number of vested shares recipients elected to defer settlement, released during period (in shares) | 18,919 |
Stock-Based Compensation - Empl
Stock-Based Compensation - Employee Stock Purchase Plan (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Proceeds from shares issued in connection with employee stock purchase plan | $ 0 | $ 0 | $ 7,113 | $ 5,546 |
Employee Stock Purchase Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation expense | $ 200 | $ 200 | ||
Unrecognized compensation expense, period for recognition (years) | 12 days | |||
Class A Common Stock | Employee Stock Purchase Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares issued during period (in shares) | 88,047 | |||
Shares issued during period, weighted average price per share (in dollars per share) | $ 80.79 | |||
Proceeds from shares issued in connection with employee stock purchase plan | $ 7,100 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 177,503 | $ 155,022 | $ 353,170 | $ 305,211 |
Subscription and support | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 160,735 | 136,772 | 315,714 | 266,436 |
XBRL professional services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 14,027 | 14,431 | 31,620 | 31,164 |
Other services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 2,741 | $ 3,819 | $ 5,836 | $ 7,611 |
Revenue Recognition - Deferred
Revenue Recognition - Deferred Revenue and Transaction Price Allocated to the Remaining Performance Obligations (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | ||||
Deferred revenue recognized | $ 145.2 | $ 122.5 | $ 254.5 | $ 212.6 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Revenue expected to be recognized | 994.6 | 994.6 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Revenue expected to be recognized | $ 543.7 | $ 543.7 | ||
Expected period of recognition | 12 months | 12 months | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-07-01 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Expected period of recognition | 24 months | 24 months |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill - Intangible Asset Components (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life (Years) | 6 years 9 months 18 days | |
Gross Carrying Amount | $ 47,954 | $ 36,698 |
Accumulated Amortization | (16,421) | (13,806) |
Net Carrying Amount | $ 31,533 | 22,892 |
Acquired technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life (Years) | 4 years 8 months 12 days | |
Gross Carrying Amount | $ 26,261 | 15,949 |
Accumulated Amortization | (9,233) | (7,471) |
Net Carrying Amount | $ 17,028 | 8,478 |
Acquired customer-related | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life (Years) | 10 years | |
Gross Carrying Amount | $ 16,319 | 15,427 |
Accumulated Amortization | (3,442) | (2,769) |
Net Carrying Amount | $ 12,877 | 12,658 |
Acquired trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life (Years) | 2 years 10 months 24 days | |
Gross Carrying Amount | $ 2,152 | 2,172 |
Accumulated Amortization | (1,781) | (1,721) |
Net Carrying Amount | $ 371 | 451 |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life (Years) | 10 years | |
Gross Carrying Amount | $ 3,222 | 3,150 |
Accumulated Amortization | (1,965) | (1,845) |
Net Carrying Amount | $ 1,257 | $ 1,305 |
Intangible Assets and Goodwil_3
Intangible Assets and Goodwill - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense related to intangible assets | $ 1.4 | $ 1.5 | $ 2.8 | $ 3.1 |
Intangible Assets and Goodwil_4
Intangible Assets and Goodwill - Amortization of Intangible Assets by Fiscal Year (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of 2024 | $ 3,830 | |
2025 | 6,926 | |
2026 | 5,606 | |
2027 | 4,319 | |
2028 | 3,885 | |
Thereafter | 6,967 | |
Net Carrying Amount | $ 31,533 | $ 22,892 |
Intangible Assets and Goodwil_5
Intangible Assets and Goodwill - Goodwill Activity (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 112,097 |
Acquisition | 89,410 |
Foreign currency translation adjustments | (2,305) |
Goodwill, ending balance | $ 199,202 |
Net Loss Per Share - Earnings P
Net Loss Per Share - Earnings Per Share Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Denominator | ||||
Weighted-average common shares outstanding - basic (in shares) | 55,177,162 | 54,009,963 | 55,046,507 | 53,850,986 |
Weighted-average common shares outstanding - diluted (in shares) | 55,177,162 | 54,009,963 | 55,046,507 | 53,850,986 |
Basic net loss per share (in dollars per share) | $ (0.32) | $ (0.39) | $ (0.53) | $ (1.25) |
Diluted net loss per share (in dollars per share) | $ (0.32) | $ (0.39) | $ (0.53) | $ (1.25) |
Class A Common Stock | ||||
Numerator | ||||
Net loss, basic | $ (16,325) | $ (19,421) | $ (27,193) | $ (62,253) |
Net loss, diluted | $ (16,325) | $ (19,421) | $ (27,193) | $ (62,253) |
Denominator | ||||
Weighted-average common shares outstanding - basic (in shares) | 51,331,579 | 50,164,380 | 51,200,924 | 49,990,734 |
Weighted-average common shares outstanding - diluted (in shares) | 51,331,579 | 50,164,380 | 51,200,924 | 49,990,734 |
Basic net loss per share (in dollars per share) | $ (0.32) | $ (0.39) | $ (0.53) | $ (1.25) |
Diluted net loss per share (in dollars per share) | $ (0.32) | $ (0.39) | $ (0.53) | $ (1.25) |
Class B Common Stock | ||||
Numerator | ||||
Net loss, basic | $ (1,223) | $ (1,489) | $ (2,042) | $ (4,807) |
Net loss, diluted | $ (1,223) | $ (1,489) | $ (2,042) | $ (4,807) |
Denominator | ||||
Weighted-average common shares outstanding - basic (in shares) | 3,845,583 | 3,845,583 | 3,845,583 | 3,860,252 |
Weighted-average common shares outstanding - diluted (in shares) | 3,845,583 | 3,845,583 | 3,845,583 | 3,860,252 |
Basic net loss per share (in dollars per share) | $ (0.32) | $ (0.39) | $ (0.53) | $ (1.25) |
Diluted net loss per share (in dollars per share) | $ (0.32) | $ (0.39) | $ (0.53) | $ (1.25) |
Net Loss Per Share - Antidiluti
Net Loss Per Share - Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Shares subject to outstanding common stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 1,174,354 | 1,359,116 |
Shares subject to unvested restricted stock units and performance restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 2,505,323 | 2,261,742 |
Shares issuable pursuant to the ESPP | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 96,271 | 96,892 |
Shares underlying our convertible senior notes | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 6,132,025 | 4,304,082 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 17, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Business Acquisition [Line Items] | |||||
Payments to acquire business, net of cash acquired | $ 98,280 | $ 0 | $ 98,280 | $ 0 | |
Sustain.Life | |||||
Business Acquisition [Line Items] | |||||
Payments to acquire business, net of cash acquired | $ 98,300 | ||||
Cash acquired from acquisition | $ 300 | ||||
Acquisition related costs | $ 1,100 |
Acquisitions - Assets Acquired
Acquisitions - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Jun. 17, 2024 | Jun. 30, 2024 | Dec. 31, 2023 |
Business Acquisition [Line Items] | |||
Goodwill | $ 199,202 | $ 112,097 | |
Sustain.Life | |||
Business Acquisition [Line Items] | |||
Cash consideration | $ 98,532 | ||
Total consideration | 98,532 | ||
Cash | 251 | ||
Accounts receivable, net | 384 | ||
Other receivables | 4,066 | ||
Prepaid expenses and other | 239 | ||
Intangible assets | 11,890 | ||
Goodwill | 89,410 | ||
Accounts payable | (211) | ||
Accrued liabilities | (5,194) | ||
Deferred revenue | (1,042) | ||
Other long-term liabilities | (1,261) | ||
Fair value of assets and liabilities | $ 98,532 |
Subsequent Events (Details)
Subsequent Events (Details) | Jul. 30, 2024 USD ($) |
Subsequent Event | |
Subsequent Event [Line Items] | |
Share repurchase program, authorized amount | $ 100,000,000 |